Correlation Between Qualys and Crowdstrike Holdings

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Qualys and Crowdstrike Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Qualys and Crowdstrike Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qualys Inc and Crowdstrike Holdings, you can compare the effects of market volatilities on Qualys and Crowdstrike Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Qualys with a short position of Crowdstrike Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qualys and Crowdstrike Holdings.

Diversification Opportunities for Qualys and Crowdstrike Holdings

-0.63
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Qualys and Crowdstrike is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Qualys Inc and Crowdstrike Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crowdstrike Holdings and Qualys is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Qualys Inc are associated (or correlated) with Crowdstrike Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crowdstrike Holdings has no effect on the direction of Qualys i.e., Qualys and Crowdstrike Holdings go up and down completely randomly.

Pair Corralation between Qualys and Crowdstrike Holdings

Given the investment horizon of 90 days Qualys Inc is expected to under-perform the Crowdstrike Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Qualys Inc is 2.8 times less risky than Crowdstrike Holdings. The stock trades about -0.19 of its potential returns per unit of risk. The Crowdstrike Holdings is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  34,932  in Crowdstrike Holdings on March 19, 2024 and sell it today you would earn a total of  3,612  from holding Crowdstrike Holdings or generate 10.34% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Qualys Inc  vs.  Crowdstrike Holdings

 Performance 
       Timeline  
Qualys Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Qualys Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in July 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
Crowdstrike Holdings 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Crowdstrike Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Crowdstrike Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Qualys and Crowdstrike Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Qualys and Crowdstrike Holdings

The main advantage of trading using opposite Qualys and Crowdstrike Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qualys position performs unexpectedly, Crowdstrike Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Crowdstrike Holdings will offset losses from the drop in Crowdstrike Holdings' long position.
The idea behind Qualys Inc and Crowdstrike Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets